¶1
The Arizona Department of Transportation ("ADOT")
appeals the tax court's entry of summary judgment in
favor of BSI Holdings, LLC ("BSI"). We hold that,
in calculating the annual license tax due for a non-resident
aircraft based in Arizona, the word "day" in
Arizona Revised Statutes ("A.R.S.") section 28-8336
means any calendar day during which the aircraft was on the
ground in Arizona for any period of time. Because the tax
court applied a materially different definition, we vacate
its judgment and remand for further proceedings consistent
with this opinion.

FACTS
AND PROCEDURAL HISTORY

¶2
BSI is an Oregon limited liability company that was formed to
purchase, operate, and maintain a dual engine turbo-jet (the
"Jet"). During the period relevant to this appeal,
the Jet was based in Arizona and regularly flew in and out of
the Scottsdale Airport, where BSI maintained a tie-down
arrangement/hangar agreement. For the period of time at
issue, the Jet was used exclusively by Arizona resident (and
BSI member) Richard Burke for personal purposes, including
"family trips, transportation to family events, drop-off
and pick-up of family and friends."

¶3
In 2004, BSI and ADOT executed a "Closing
Agreement" that settled a dispute between them regarding
the aircraft license tax due for 2003 and 2004. Under the
terms of the Closing Agreement, BSI paid no tax for 2003. For
2004, it paid the non-resident rate applicable to aircraft
that are present in Arizona for more than 90 days but fewer
than 210 days. BSI thereafter paid that same rate for tax
years 2005 through 2012.

¶4
ADOT conducted an audit and concluded the Jet had been based
in Arizona for more than 209 days each audited year
and that BSI should therefore have paid the resident tax
rate. ADOT issued an assessment for $161, 004. ADOT also
notified the Federal Aviation Administration of the
assessment, and a lien was recorded against the Jet.
See A.R.S. § 28-8330(A) ("The license tax,
registration fee and penalty constitute a lien on the
aircraft on which they are due from the due date.").

¶5
After an unsuccessful administrative appeal, BSI filed a
complaint in the tax court, alleging ADOT improperly applied
the tax rates set forth in A.R.S. § 28-8336 and was
estopped from imposing assessments for tax years 2004 through
2012. BSI subsequently moved for partial summary judgment,
arguing: (1) the Closing Agreement barred the 2004
assessment; (2) ADOT was equitably estopped from imposing
assessments for tax years 2004 and 2005; and (3) the lien
against the Jet was illegal. ADOT responded to BSI's
motion and cross-moved for summary judgment as to the
validity of the lien and the assessment for the eight tax
years at issue. BSI responded to ADOT's motion and
cross-moved for summary judgment, arguing the assessment was
invalid for all tax years.

¶6
The tax court granted BSI's cross-motion for summary
judgment, ordering that the assessment be vacated and abated.
The court concluded the Jet was present in Arizona "for
more than 90 days, but less than 210 days, in each of the
subject tax years" and was thus eligible for the
non-resident tax rate BSI had previously paid. The court also
awarded BSI attorneys' fees and costs. After the court
issued a final judgment, ADOT timely appealed. We have
jurisdiction pursuant to A.R.S. §§ 12-120.21(A)(1)
and -170(C).

DISCUSSION

&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&nbsp;&para;7
An "annual license tax is imposed on all aircraft based
in this state and required to be registered" unless an
exemption applies. A.R.S. &sect; 28-8335; see also
Ariz. Const. art. IX, &sect; 15. Aircraft owned by Arizona
residents are taxed at .5% of the "average fair market
value" of the aircraft. See A.R.S. §
28-8335(B). Aircraft owned by non-residents may receive ...

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